Additional information(a) Stock, 30 June 2019, TzS 74,210.(b) Expenses to be accrued: Office Expenses TZS 215; Wages TZS 720.(@ Depreciate fixtures 15 per cent on reducing balance basis, buildings TZS5,000.(d) Reduce provision for doubtful debts to TZS 1,250.(e) Partnership salary: TZS 30,000 to Frame. Not yet entered.F) Interest on drawings: Frame TZS 900; French TZS 600.(g) Interest on capital account balances at 5 per cent.REQUIRED:Prepare profit and loss appropriation statement for the year ended 30 June2019, and a statement of financial position as at that date. QUESTION 31.Frame and French are in partnership sharing profits and losses in the ratio3/5:2/5, respectively. The following is their trial balance as at 30 September2015.DrCrTZSTZSBuildings (cost TZS 210,000)160,000Fixtures at cost8,200Provision for depreciation: Fixtures4,200Debtors61,400Creditors26,590Cash at bank6,130Stock at 30 September 201462,740Sales363,111Purchases210,000Carriage outwards3,410Discounts allowed620Loan interest: P Prince3,900Office expenses4,760Salaries and wages57,809Bad debts1,632Provision for doubtful debts1,400Loan from P Prince65,000Capitals: Frame100,000French75,000Current accounts: Frame4,100French1,200Drawings: Frame31,800French28,200640,601640,601Avitus Dominick: Msc Finance and Investment, CPA (T ) & BAC (0714-336097)

A partnership is an agreement made by two or more partners to carry out business and share profits…

Additional information (a) Stock, 30 June 2019, TZS 74,210. (b) Expenses to be accrued: Office Expenses TZS 215; Wages TZS 720. (g Depreciate fixtures 15 per cent on reducing balance basis, buildings TZS 5,000. (d) Reduce provision for doubtful debts to TZS 1,250. (e) Partnership salary: TZS 30,000 to Frame. Not yet entered. ) Interest on drawings: Frame TZS 900; French TZS 600. (g) Interest on capital account balances at 5 per cent. REQUIRED: -Prepare profit and loss appropriation statement for the year ended 30 June 2019, and a statement of financial position as at that date.

Additional information (a) Stock, 30 June 2019, TZS 74,210. (b) Expenses to be accrued: Office Expenses TZS 215; Wages TZS 720. (g Depreciate fixtures 15 per cent on reducing balance basis, buildings TZS 5,000. (d) Reduce provision for doubtful debts to TZS 1,250. (e) Partnership salary: TZS 30,000 to Frame. Not yet entered. ) Interest on drawings: Frame TZS 900; French TZS 600. (g) Interest on capital account balances at 5 per cent. REQUIRED: -Prepare profit and loss appropriation statement for the year ended 30 June 2019, and a statement of financial position as at that date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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John and Peter are in partnership sharing profits and losses in the ratio 3/5: 2/5, respectively.The following is their trial balance as of 31 December 2007.Dr Cr$ $Buildings (cost $105,000) 80,000Fixtures at cost 4,100Provision for depreciation: Fixtures 2,100Debtors 30,700Creditors 13,295Cash at bank 3,065Stock at 01 January 2008 31,370Sales 181,555.50Purchases 105,000Carriage outwards 1,705Discounts allowed 310Loan interest: M. Money 1,950Office expenses 2,380Salaries and wages 28,904.50Bad debts 816Provision for doubtful debts 700Loan from M. Money 32,500Capitals: Shoes 50,000Socks 37,500Current accounts: Shoes 2,050Socks 600Drawings: Shoes 15900Book 14,100320,300.5 320,300.5i. Stock, 31 December 2008, $35,105ii. Expenses to be accrued: Office Expenses $107.50; Wages $360iii. Depreciate fixtures 15 percent on reducing balance basis, buildings $2,500iv. Reduce provision for doubtful debts to $625v. Partnership salary: $15,000 to Shoes. Not yet enteredvi. Interest on drawings:…
On January 1. 20x7 Jorgia, Lizza. Miles, Nice formed a partnership. At the time of formation, the partners agreed to the following amount of investment, division of profits and losses, and drawings: Jorgia Lizza Miles Nice Initial Investment P36,000 P56,000 P60,000 P40.000 Profit and Loss Ratio 15% 30% 35% 20% Annual Withdrawals 20x7 P14,400 P14.400 P14,400 P14,400 20x8 19.200 19.200 19.200 19 200 20x9 14,600 14,600 30.000 30.000 The net income for 20x7, 20x8 and 20x9 armounts to P130,000, P156,000, P172.000 respectively. AL the end of 20x9. Miles was consented to withdraw from the partrership. 1. Compute for the capilal of Rice if Miles sold her interest to Rice with the consent of other partners at 10% more than her capilal balance. 2. Compute for the bonus to Nice if Miles sold her interest to the partnership at 10% less than her capital interest.
Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively.The following was their balance sheet as at 31 December 2018: Cost Depreciation. NBVNon-Current Assets $ $ $Premises 42,000 32,000 10,000Motor Vehicles 14,000 10,000 4,000Furniture and Fittings 6,000 2,000 4,000 62,000 44,000 18,000Current Assets Inventory 24,000Trade Receivables 6,800 30,800 48,800Capital and LiabilitiesCapitals: Mary 7,000 Jane…
Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: NBV 24 10,000 4,000 4.000 Cost Depreciation. Non-Current Assets Premises 42,000 14,000 6.000 32,000 10,000 2.000 44.000 Motor Vehicles Furniture and Fittings 62.000 18,000 Current Assets Inventory 24,000 Trade Receivables 6,800 30.800 48.800 Capital and Liabilities Capitals: 7,000 7,000 Mary Jane Susan 4.000 18,000 Current A/es Mary Jane 6,800 5,000 3.400 Susan 15.200 33,200 6,000 Loan from Toby Current Liabilities: Trade Payables Bank overdraft 7,800 1.800 9,600 48.800 On 31 December 2018 the partners decide to terminate the business. The following took place: i. Mary took over one of the motor vehicles for $5,000 Stock was taken over by Susan for $12,000 Premises, inventory, the remaining motor vehicles, fumiture and fittings were sold for $9000, $12000, $1000 and S1000 respectively Receivables realised $6,450 and Payables…
The Partnership of Rose and Dailine is being dissolved, and the assets and equities at book value and fair value and profit and loss ratios at January 1, 2021 are as follows:Book Value Fair ValueCash P20,000 P20,000Accounts Receivables – net 100,000 100,000 Inventories 50,000 200,000Plant Assets – net 100,000 120,000P270,000 P440,000Accounts Payable P50,000 P50,000Rose, Capital 120,000Dailine, Capital 100,000P270,000 Rose and Dailine agreed to admit Janyla into the partnership for one-third interest. Janyla invests P95,000 cash and a building to be used in the business with a book value to Janyla for P100,000 and a fair value of P120,000.Compute the capital balance of Dailine after the admission assuming that the assets are revalued and goodwill is recognized.a. P175,000 c. P195,000b. 155,000 D. 205,000
GWS and BCP organized the GB Partnership on January 1, 2018. The following entries were made in their capital accounts during 2018. Debit Credit GWS, Capital: January 1 April 1 October 1 P315,000 P105,000 175,000 Debit Credit ВСР, Саpital: January 1 March P413,000 1 September 1 November 1 52,500 105,000 94,500 Required: А. If the partnership profit for the year 2018 computed before salaries or interest is P217,000, determine its distribution between the partners under each of the following independent profit-sharing agreements: (1) Interest at 6% is allowed on average capital investments and the remainder of the profit is divided equally. (2) A salary of P126,000 is to be credited to BCP, 6% interest is allowed on each partner on his ending capital balance and the remainder of the profit in the ratio of 3:2. Salaries are allowed GWS and BCP in amounts of P119,000 and P133,000, respectively, and the remaining profit or resulting loss is divided in the ratio of average capital balance.…
On March 1, 20x4, CC and FF formed a partnership with each contributing the following assets: CC FF Cash... P 30,000 P70,000 Machinery. 25,000 75,000 Building.. 225,000 ******* Furniture and fixtures... 10,000 The building is subject to a mortgage loan of P90,000, which is to be assumed by the partnership agreement provides that CC and FF share profits and losses 30 percent and 70 percent, respectively. On March 1, 20x4, the capital account of FF would showa balance of:
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 187500 x Capital A/c 56250 Y Capital A/c 25000 Sundry creditors 50000 Sales (net) 25000 Discount 22500 Provision for bad debts 62500 37500 Plant and Machinery Wages 31250 Opening Stock of Finished Goods 406250 3125 Opening Stock of Raw material Opening Stock of Work in Progress 1875 Sundry debtors 62500 Commission 12500 Carriage inwards 1875 Y's Loan A/c 37500 Carriage outwards 1125 Factory Expenses 9375 Royalties 1875 Purchase of Raw material (net) 93750 Factory rent & taxes 8125 Discount 3625 Office rent 5000 Insurance 2500 Bad debts 1875 Office Expenses 9375 Salaries of works manager 15000 Cash at bank 10250 592500 The following additional information is to be taken into consideration: 592500…
According to Profil and Loss Account, the net profit for the year is OMR250,000. The total interest on partner's capital is OMR BOLO00 and interest on partner's drawings is OMR 30.000 The net profit as per Profit and Loss Appropriation Account will be OMR 110.000 (Prolit) OMR 200,000(Loss) OMR 200,000(Protit) OMR 200000 (Profit)
Required: 3. Prepare journal entry to record Pedro’s admission. 4. During the first year of operations, the partnership earned P650,000. After Pedro’s admission, the profitand loss sharing ratio is 40:40:20 for Juan, Pablo, and Pedro, respectively, based on capital credits.Drawings were made in these amounts: Juan, P100,000; Pablo, P130,000; Pedro – P56,000. What isthe capital balance of Pedro after the first year?
28. On February 14, AA and BB formed a partnership and contributed the following assets at historical costs: AA BB Cash P600,000 P200,000 Inventories ? ? Furniture and fixtures 40,000 Delivery equipment 80,000 Land 300,000 The land was subject to a mortgage which has an unpaid balance of P50,000. The mortgage will be assumed by the partnership. AA and BB agreed to share profits and losses in the ratio of 1:2, respectively. The partners agreed to contribute inventories (BB is to contribute inventories worth 2.5 times the peso value of the inventories to be contributed by AA) in order to have their capital credits in the same ratio as their profits and losses ratio. How much is the capital account of BB upon formation of the partnership?
Exercise 3-2 (Division of Profit; Interest on Average Capital) Danica and Jenson are partners. Their capital accounts during the fiscal year 2019 were as follows: Danica, Capital 120,000 1/1 Jenson, Capital 3/1 180,000 1/n 1,200,000 140,000 100,000 9/1 800,000 160,000 60,000 4/1 7/1 11/1 10/1 Profit of the partnership is P250,000 for the year. Determine the partners shared profit under the following assumptions: 1. Each partner is to be credited 12% interest on his average capital. 2. Any remaining profit or loss is to be divided equally.